Summary
NVIDIA Corporation (NVDA) filed an 8-K on March 13, 2016, announcing the adoption of its Fiscal Year 2017 Variable Compensation Plan. This plan, approved by the Compensation Committee of the Board of Directors on March 8, 2016, outlines a performance-based cash incentive program for eligible executive officers. The compensation awarded will be tied directly to the achievement of specific corporate performance goals, primarily focused on revenue targets for fiscal year 2017, which ends on January 29, 2017. This initiative signals the company's focus on aligning executive compensation with key financial performance metrics and driving shareholder value.
Key Highlights
- 1Adoption of the Fiscal Year 2017 Variable Compensation Plan (2017 Plan) effective March 8, 2016.
- 2Executive compensation will be variable and based on achieving specific corporate performance goals for FY 2017.
- 3Primary performance metric for the 2017 Plan is revenue achievement for fiscal year 2017.
- 4The plan sets threshold, target, and stretch operating plan levels for performance.
- 5CEO Jen-Hsun Huang has a target variable compensation of $1,000,000, representing 100% of his base salary.
- 6Other named executive officers also have target variable compensation amounts and percentages of their base salaries outlined.
- 7Eligibility for award payout requires participants to remain employees through the payment date.
Frequently Asked Questions
The main purpose of the 2017 Plan is to incentivize and reward eligible executive officers by providing them with the opportunity to earn a variable cash payment based on the achievement of specific corporate performance goals, primarily revenue targets, for fiscal year 2017.
Executive compensation under the 2017 Plan will be variable and directly linked to NVIDIA's achievement of predefined performance goals, specifically revenue levels set for fiscal year 2017. The actual payout will depend on whether the company meets threshold, target, or stretch operating plan levels.
The key executives covered include President and CEO Jen-Hsun Huang ($1,000,000, 100% of base salary), CFO Colette M. Kress ($275,000, 35% of base salary), EVP Worldwide Field Operations Ajay K. Puri ($500,000, 56% of base salary), EVP Chief Administrative Officer David M. Shannon ($200,000, 25% of base salary), and EVP Operations Debora Shoquist ($150,000, 21% of base salary).
Yes, a key condition is that participants must remain employees of NVIDIA through the payment date of the award, unless otherwise determined by the Compensation Committee.